Washington Move-In Fee Installment Plans — Compliance Requirements Under SB 5961 (2026)

What is SB 5961 and Why It Changed Washington Landlord Rules

In March 2024, Washington Governor Jay Inslee signed Senate Bill 5961 into law, creating the first comprehensive statewide regulation of move-in fee installment payment plans. The law, codified at RCW 59.18.610, was enacted to prevent predatory move-in practices where landlords discouraged tenants from paying in installments or imposed hidden fees, penalties, or impossible payment schedules that made it difficult for low- and moderate-income renters to move into housing.

Before SB 5961, Washington had no specific statute governing installment payment arrangements. Some landlords offered them voluntarily; others prohibited them entirely. This patchwork approach created confusion and litigation risk for self-managing landlords who either guessed at compliance or inadvertently violated tenant rights.

The law applies statewide to all residential tenancy agreements in Washington and covers move-in fees of all types, including security deposits, damage deposits, pet fees, and any other charges collected at or before move-in. If you manage properties in Washington and collect upfront fees, SB 5961 applies to you.

Who Must Comply with RCW 59.18.610

The statute applies to all landlords in Washington state who:

• Collect move-in fees (security deposits, damage deposits, pet deposits, move-in inspection fees, or any similar charge due at or before tenancy)
• Offer or accept installment payment plans for those fees
• Manage residential property with one or more units (applies to small landlords managing 2–75 units)

The law does not exempt landlords based on property size, location, or rent level. It applies uniformly across all Washington cities and counties, though some jurisdictions may have additional local requirements.

Note: RCW 59.18.610 does not require you to offer installment plans. Landlords can still require payment in full at move-in. However, if you choose to offer installment payment options—whether advertised, offered upon request, or mentioned in your lease—you must comply with every requirement in the statute.

The Four Core Requirements of RCW 59.18.610

1. Written Agreement Required Before Tenancy Begins

RCW 59.18.610(1) mandates that any installment plan must be documented in a written agreement that:

• Is signed by both the landlord (or manager) and the tenant
• Is provided to the tenant before the tenant takes occupancy
• Clearly states all payment terms, amounts, and due dates

This requirement is absolute. A verbal agreement to accept installment payments has no legal effect under the statute. If you tell a tenant over the phone that they can pay their $2,000 move-in fee in three payments and later dispute the arrangement, you have no written evidence to support your position—and the tenant's attorney will argue the installment plan was never properly authorized.

Practical compliance step: Create a separate "Move-In Fee Installment Payment Agreement" form that is distinct from the lease. This agreement should be executed at lease signing and attached as an exhibit to the lease or retained in your lease file. Do not attempt to bury installment terms in general lease language; courts interpret such language strictly against the drafter (the landlord).

Timing compliance: "Before the tenant takes occupancy" means before the first day the tenant has the right to enter the unit. If you sign the agreement on move-in day, you are in compliance. If you sign it after the tenant occupies the unit, you have violated RCW 59.18.610(1) and may owe damages.

2. Maximum of Three Equal Installment Payments

RCW 59.18.610(1) explicitly caps installment plans at three payments. The statute states:

"If a landlord offers a tenant the option to pay a move-in fee in installments, the landlord shall offer the tenant the option to pay the move-in fee in no more than three equal installments."

This language is unambiguous: no landlord in Washington can offer a four-payment plan, a five-payment plan, or a plan where payments are spread over months. Three is the legal maximum, and the law uses the word "equal," meaning each payment must be for the same dollar amount.

Example: A tenant's total move-in costs are $3,000 (security deposit $2,000 + pet fee $1,000). The only compliant installment options are:

• Plan A: Three payments of $1,000 each
• Plan B: Two payments of $1,500 each (you are not required to offer a three-payment plan; you can offer fewer)
• Plan C: One payment of $3,000 (full payment at move-in)

A plan requiring $900, $1,000, and $1,100 would violate the "equal" requirement, even though the difference is minor.

3. First Payment Due Upon Occupancy, Not Before

RCW 59.18.610(1) states that the first installment "shall be due upon occupancy." This means:

• The tenant does not pay before move-in
• The first payment is due on the first day the tenant has occupancy (usually move-in day)
• Subsequent payments are due on dates you specify in the written agreement

Many landlords mistakenly collect the first installment when the lease is signed (days or weeks before move-in). This violates RCW 59.18.610 and can also trigger RCW 59.18.150 (unlawful payment collection), which imposes additional penalties.

Practical consequence: If a tenant pays you the first installment before occupancy and later disputes the arrangement, the tenant can demand return of that payment plus statutory damages. This is a direct liability exposure for landlords who don't time payments correctly.

4. Due Dates for Remaining Installments

The statute does not prescribe exact due dates for the second and third installments. However, your written agreement must clearly specify:

• The exact date or payment condition for the second installment
• The exact date or payment condition for the third installment (if applicable)

You have discretion in setting these dates. Common compliant structures include:

• Due upon occupancy, 30 days after occupancy, and 60 days after occupancy
• Due upon occupancy, at lease signing (if after occupancy begins), and 30 days after occupancy
• Due upon occupancy and the remaining balance due within 60 days

Whatever schedule you choose must be disclosed in the written agreement before the tenant occupies the unit. Changes to the payment schedule after tenancy begins are governed by different rules (lease modification requirements) and should be made in writing.

What Counts as a "Move-In Fee"?

RCW 59.18.610 applies to all move-in fees, defined broadly as charges due "in connection with the occupancy or possession of the dwelling unit" before or upon move-in. This includes:

Fee Type	Subject to RCW 59.18.610?	Notes
Security deposit	Yes	Always a move-in fee; installment rules apply
Pet deposit/fee	Yes	Charged at move-in; subject to installment rules
First month's rent	No	Rent payment, not a fee; not covered by RCW 59.18.610
Last month's rent held in trust	No	Rent payment; separate rules apply (RCW 59.18.170)
Move-in inspection/cleaning fee	Yes	Due at move-in; installment rules apply if collected upfront
Key/lock deposit	Yes	Charged at move-in; installment rules apply
Furniture/appliance fee	Yes	If charged at move-in; installment rules apply
Administrative/application fee (post-approval)	Yes (if due at move-in)	If collected at move-in, it is a move-in fee subject to installment rules
Monthly pet rent	No	Recurring rent charge; not a move-in fee; separate rules apply

Key distinction: RCW 59.18.610 applies only to fees charged "in connection with occupancy" at or before move-in. It does not apply to ongoing monthly charges (like pet rent or utilities), maintenance fees charged during tenancy, or late fees assessed after the lease begins.

Penalties for Non-Compliance with RCW 59.18.610

Statutory Damages and Tenant Remedies

If a landlord violates RCW 59.18.610, the tenant can bring a civil action for damages. RCW 59.18.610(3) does not specify a damage amount, but tenants typically rely on RCW 59.18.150, which governs unlawful payment collection and imposes:

• Actual damages (the money owed back to the tenant)
• Statutory damages of up to $1,000 for each violation
• Attorney fees and court costs
• Pre-judgment and post-judgment interest

Because a single violation of the installment plan rules (e.g., collecting payment before occupancy, offering four installments instead of three, failing to provide written agreement) can constitute multiple separate violations of RCW 59.18.150, damages can accumulate quickly.

Attorney General Enforcement

The Washington Attorney General's Office has authority to investigate and enforce RCW 59.18.610 violations. If the AG determines a pattern or practice of violations, it may pursue civil penalties under the Washington Consumer Protection Act (RCW 19.86), which can result in:

• Civil penalties up to $2,000 per violation
• Injunctions ordering cessation of the unlawful practice
• Restitution to affected tenants

Self-managing landlords with multiple properties who repeatedly violate the statute face higher exposure to AG enforcement than landlords with isolated incidents.

Real-World Compliance Costs

A Seattle-area landlord who collected the first installment before occupancy and did not provide a written agreement to two tenants could face:

• Actual damages: $1,000 × 2 tenants = $2,000
• Statutory damages: $1,000 × 2 violations (one per tenant) = $2,000
• Attorney fees and costs: $3,000–$8,000 (typical for small claims escalation)
• Total: $7,000–$12,000 in liability from a single compliance mistake

Step-by-Step Compliance Checklist

Use this checklist before offering any move-in fee installment plan:

Compliance Step	Requirement	Check
1. Determine total move-in costs	Add all fees due at or before occupancy	☐
2. Decide whether to offer installments	You are not required to; if you do, you must comply	☐
3. Divide into equal amounts (max 3 payments)	Each payment must be equal in amount; use simple division math	☐
4. Create written agreement	Document all terms, payment amounts, and due dates in writing	☐
5. Obtain tenant signature	Both parties must sign the agreement	☐
6. Deliver before occupancy	Signed agreement must reach tenant before move-in day	☐
7. Collect first payment at occupancy	First installment due on move-in day, not before	☐
8. Track subsequent payments	Document all payments received; send reminders for second and third installments	☐
9. Apply payments correctly	Ensure installment payments are credited to move-in fees, not rent or other charges	☐
10. Retain documentation	Keep signed agreements and payment records for at least 3 years	☐

Common Compliance Mistakes and How to Avoid Them

Mistake #1: Offering More Than Three Installments

What happens: Landlord creates a "flexible" payment plan allowing the tenant to spread the $2,000 security deposit over four or five monthly payments. This directly violates RCW 59.18.610(1).

Why it's a problem: Courts interpret the statute literally. "No more than three equal installments" means exactly that. A four-payment plan is not substantially compliant; it is a violation.

How to fix it: Cap all installment plans at three payments maximum. If a tenant requests more flexibility, offer them a full payment at move-in or a two-payment plan instead.

Mistake #2: Collecting the First Installment Before Move-In

What happens: Lease is signed on October 15; move-in is November 1. Landlord collects first installment of $1,000 on October 15, thinking the agreement is signed so payment should follow.

Why it's a problem: RCW 59.18.610(1) explicitly states the first installment is "due upon occupancy." October 15 is not occupancy. This is a direct violation and triggers RCW 59.18.150 liability.

How to fix it: Schedule first payment collection for move-in day or the day after. Use your lease signing checklist to remind yourself: "Do not collect first installment until occupancy begins."

Mistake #3: Failing to Provide a Written Agreement

What happens: Landlord mentions to tenant during showing: "We can work with you on that security deposit—maybe split it into two or three payments." Tenant moves in, pays in installments, no written document exists.

Why it's a problem: The statute requires a written agreement signed by both parties before occupancy. A verbal arrangement has no legal standing. If a dispute arises, you have no evidence of the terms, and the tenant's default position is that no agreement existed.

How to fix it: Never offer or discuss installment plans verbally. Always direct tenants to your written policy and require execution of a formal installment agreement before lease signing.

Mistake #4: Using Unequal Payment Amounts

What happens: Landlord divides a $3,000 move-in fee into payments of $1,000, $1,200, and $800, intending to "match" the tenant's pay schedule. This is unequal and violates the statute.

Why it's a problem: RCW 59.18.610(1) mandates "equal installments." Unequal payments, even if the total is correct, are a technical violation that creates statutory damages liability.

How to fix it: Use simple division. $3,000 ÷ 3 = $1,000 per payment. If the division results in a remainder (e.g., $3,100 ÷ 3 = $1,033.33), round to $1,034, $1,033, $1,033 or adjust the last payment to catch the remainder. Communicate the exact amounts to the tenant in writing.

Mistake #5: Applying Installment Payments to the Wrong Account

What happens: Tenant pays the first $1,000 installment, and the landlord deposits it into the general operations account or applies it to rent instead of holding it as part of the move-in fee. When the tenant moves out, the landlord cannot account for the deposit.

Why it's a problem: Installment payments for security deposits and damage deposits must be held in trust under RCW 59.18.170. Misapplying these payments violates both the installment rule and the trust account requirement, exposing you to liability under multiple statutes.

How to fix it: Create a separate ledger or account for installment payments. Track each payment as part of the tenant's move-in fee deposit account. Do not commingle installment payments with rent or operating funds.

Frequently Asked Questions

Q: Can I require a tenant to pay the full move-in fee upfront if they don't request an installment plan?

A: Yes. RCW 59.18.610 does not require you to offer installment plans. You can require full payment at move-in. The statute only applies if you offer or agree to an installment arrangement. However, some Washington jurisdictions (e.g., Seattle) have local ordinances that may require you to offer installments if requested by a tenant. Check your city or county rules.

Q: What if a tenant misses a second or third installment payment? Can I charge a late fee or begin eviction?

A: Yes, but only if your lease and written installment agreement clearly specify the consequences. You can charge a late fee consistent with RCW 59.18.150 (reasonable and proportional to the cost of processing a late payment). You cannot evict for non-payment of a move-in fee installment because it is not rent. However, you can pursue a civil claim for the unpaid installment or offset it against the tenant's security deposit at move-out. Include this language in your written installment agreement.

Q: If a tenant pays all three installments early, do I have to accept early payment?

A: You are not required to accept early payment, but it is advisable to do so and to accept it without penalty. If you refuse early payment, you risk tenant claims that you are acting in bad faith. If the tenant pays all installments before the final due date, accept the payment, credit it properly, and confirm the move-in fee is fully paid in writing.

Q: Can I offer different installment options to different tenants?

A: Yes. Some tenants might accept a one-payment option, others a two-payment option, and others a three-payment option. Each option must comply with RCW 59.18.610 (written agreement, equal payments, first payment upon occupancy), but you can offer a menu of choices. Communicate all options to prospective tenants consistently to avoid fair housing concerns.

Q: Does the installment plan rule apply to furnished or corporate housing?

A: RCW 59.18.610 applies to residential tenancy agreements in Washington. Furnished housing and corporate-supplied temporary housing may have different rules. Consult your lease type and local authority, or speak with a Washington tenant-rights attorney if you manage specialized housing.

How to Document Your Installment Plan Compliance

Maintain a file for each tenant that includes:

• Signed lease agreement
• Signed "Move-In Fee Installment Payment Agreement" (separate, distinct document)
• Proof of delivery (email confirmation, signed receipt, or dated hand delivery) showing the agreement was provided before occupancy
• Payment receipts or confirmation for each installment showing the date received and amount
• Ledger entry showing the move-in fee account balance after each installment payment
• Move-out reconciliation showing how the move-in fee (including all installments collected) was applied to damages, cleaning, or returned to the tenant

Retain these documents for at least 3 years (the typical statute of limitations for breach of contract claims in Washington).

Coordination with Other Washington Landlord-Tenant Statutes

RCW 59.18.610 works alongside other Washington statutes governing move-in fees:

• RCW 59.18.170 (Security Deposit Trust Account): Move-in fees that include security deposits must be held in a non-interest-bearing trust account. The fact that the deposit is paid in installments does not change the trust account requirement.
• RCW 59.18.260 (Move-In Condition Inspection): Tenants have the right to a pre-occupancy inspection. This must occur before or at move-in, regardless of how many installments the tenant is paying.
• RCW 59.18.150 (Unlawful Payment Collection): Violations of RCW 59.18.610 often also violate RCW 59.18.150, exposing landlords to enhanced damages.
• RCW 59.18.060 (Lease Disclosures): Your lease must disclose the availability of installment payment options (if you offer them) or your policy of requiring full payment at move-in.

If you use a compliance platform that integrates these rules, you reduce the risk of overlooking one statute while focusing on another.

Practical Implementation for Self-Managing Landlords

If you manage 2–75